Corporate securities administration traditionally deals exclusively with tracking the allocation, granting, exercising, redemption, conversion, and termination of securities by a company. Using a computer and a variety of software solutions, a securities administrator can track all corporate securities authorized and issued. The owner, value, and status of the security can be tracked as well. Typically, a company wishing to authorize, issue, transfer or record securities uses: 1) a securities law firm to advise, prepare, and draft the necessary documents and assure regulatory compliance, 2) an accounting firm to assess and record the impact of the securities distribution on the corporate balance sheet and tax statements, 3) an outside service provider or transfer agent to actually issue stock certificates to the recipients, and 4) a brokerage firm to facilitate the sale of publicly traded securities. This conventional process is cumbersome and error-prone. Synchronizing, communicating, and validating the work done by in-house company staff and outside firms is very difficult, even for the simplest securities transaction. In typical situations, last minute changes to the securities transaction are common. Sometimes, the securities transaction may not be properly validated against the company's capitalization structure. The problem can be worse in privately-held companies, which commonly do not have qualified resources to properly administer their securities transactions. For example, the securities administrator could be instructed by a company executive to grant a number of stock options which could exceed what was authorized by the company's capitalization structure.
What is needed is a system and method to administer a company's securities administrator functions within the context of the company's capitalization structure.